Food & Beverage Concession RFP 2010

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REQUEST FOR PROPOSALSSALT LAKE CITY CORPORATIONDEPARTMENT OF AIRPORTSAIRPORT FOOD AND BEVERAGE CONCESSIONSSample DocumentAUGUST 2010

SECTION 1RFP ContentsSection 1 . RFP ContentsSection 2 . Notice to RespondentsSection 3 . ScheduleSection 4 .DefinitionsSection 5 . General OverviewSection 6 . Submittal and Minimum Qualification RequirementsSection 7 . Area and ScopeSection 8 . Description of Food and Beverage Service Concession OpportunitySection 9 . Nondiscrimination/Disadvantaged Business EnterpriseSample DocumentSection 10 . Proposal Responses and Submittal RequirementsSection 11 . Evaluation CriteriaSection 12 . Requirements and RestrictionsSection 13 . Proposal FormSection 14 .Pre-Proposal Conference Attendance FormSection 15 . Affidavit of Non-collusionSection 16 . Statistical InformationSection 17 . Historical Concession SalesSection 18 . Letter of Credit Checklist and Performance Bond FormSection 19 . Concession Lease Outline DrawingsSection 20 . Summary or 2005 Passenger Survey FindingsAIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 2

SECTION 2Notice to RespondentsSalt Lake City Corporation ("City"), through its Department of Airports ("SLCDA"), isinviting proposals from qualified firms to operate and manage food and beverageconcession(s) at the Salt Lake City International Airport ("Airport").The RFP package can be obtained by prospective Respondents beginning August 25,2010, by registering and downloading documents online at www.slcpurchasing.com.Sealed proposals will be received at the SLCDA Division of Administration andCommercial Services, P.O. Box 145550, Salt Lake City, Utah 84114-5550 (or ifdelivered by courier to the SLCDA Division of Administration and Commercial Services,Salt Lake City International Airport, Terminal Unit One, 776 N. Terminal Drive, 2nd FloorMezzanine, Salt Lake City, Utah 84122) until 2 p.m. local time on October 28, 2010.A mandatory pre-proposal conference will be held on September 9, 2010, at the AirportHilton located in the International Center at 5151 Wiley Post Way, Salt Lake City, Utah,beginning at 9:00 a.m., local time. People with disabilities may make requests forreasonable accommodation no later than 48 hours in advance in order to attend thispre-proposal conference. Accommodations may include alternate formats, interpreters,and other auxiliary aids. This is an accessible facility. For questions or additionalinformation, please contact Pam Johnson at (801) 575-3432; TDD (801) 575-2264.Sample DocumentThe purpose of the conference will be to discuss the requirements and objectives of theRFPs, answer questions, provide a networking opportunity for prospective respondentsand sublessees, and tour the existing concession facilities. The tour of the existingconcession facilities is optional and not mandatory. Airport managementrepresentatives will be available to answer questions.Prospective respondents should return the Pre-Proposal Conference Attendance Formattached to this RFP as Section 14 via email to sondra.donivan@slcgov.com or by orfacsimile to (801) 575-2041, by September 6, 2010.Respondents may contact Sondra Donivan at (801) 575-2929 with questions regardingthe website. The right to reject any and all proposals or to accept any proposal that isdeemed to be more advantageous to the public and City is reserved.AIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 3

SECTION 3ScheduleRFP AvailableAugust 25, 2010Pre-Proposal ConferenceSeptember 9, 2010Statements DueOctober 28, 2010Interviews (tentative)January 19-20, 2011Concession BuildoutAfter January 1, 2012Contract CommencementJanuary 1, 2012Sample DocumentRespondents or their agents are instructed not to contact selection committeemembers, City employees, the Mayor’s office, the City Council, or members of theAirport Board (as outlined in Salt Lake City Code Title 2 Chapter 2.44, Conflict ofInterest), or externally manipulate or influence the procurement process in anyway, other than through the instructions contained herein, from the date ofrelease of this RFP to the date of execution of the Agreement resulting from thissolicitation. City, in its sole discretion, may disqualify Respondents in violationof this paragraph.AIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 4

SECTION 4DefinitionsThese definitions apply to this RFP.Addendum – Written or graphic instrument issued prior to Proposal Due Date thatclarifies, corrects or changes the RFP or the Concession Lease documents.Airport – Salt Lake City International Airport.Airport Concession Disadvantaged Business Enterprise (ACDBE) – For the purposes ofthis RFP, this is a small business enterprise that has been certified by the Utah UnifiedCertification Program as a disadvantaged business enterprise as defined in 49 CFR,Part 23.Beneficial Occupancy – Beneficial Occupancy shall occur as of the latest of the datesestablished under the Concession Lease for completion of build out for concessionlocations identified herein.City – Salt Lake City Corporation.Sample DocumentCommunication Prohibition - Regarding this solicitation, Respondents or their agentsare instructed not to contact selection committee members, City employees, theMayor’s office, the City Council, or members of the Airport Board (as outlined in SaltLake City Code Title 2 Chapter 2.44, Conflict of Interest), or externally manipulate orinfluence the procurement process in any way, other than through the instructionscontained herein, from the date of release of this RFP to the date of execution of theAgreement resulting from this solicitation. City, in its sole discretion, may disqualifyRespondents in violation of this paragraph.Concession Lease - A written Lease between the City and a Selected Respondentcovering the leasing of premises located in Salt Lake City International Airport for foodand beverage service concession operations.Day – A calendar day of 24 hours measured from midnight to the next midnight.Greater Salt Lake Metropolitan Area - For the purposes of this RFP the Greater SaltLake Metropolitan Area is anchored by Salt Lake City and encompasses thegeographical area and communities along the Wasatch Front generally between thecities of Ogden and Provo.Leased Premises – The premises to be leased for use in performing the servicesoutlined in this RFP.Local Brand – A branded concept that has a significant presence in, but little to nopresence outside of, the Greater Salt Lake Metropolitan Area.Minimum Annual Guarantee – The minimum amount of rent a Selected Respondent willpay per lease year for the privilege of renting space for the operation of food andbeverage concessions at the Airport.AIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 5

Minimum Qualifications – The minimum qualifications that have been established by theSLCDA that must be satisfied by Respondents as a precondition to further considerationof their Proposals.National Brand – A branded concept that has a significant presence in the UnitedStates.Percentage Rent – Rent based on a percentage of gross receipts that a successfulRespondent will pay under the Concession Lease in the event the Percentage Rent socalculated exceeds the Minimum Annual Guarantee. The Percentage Rent may beproposed as a single percentage that remains the same over the term of theConcession Lease or as stepped percentages that are applicable at different grosssales levels.Pre-Proposal Conference – A conference following the issuance of the Request forProposals, attended by potential Respondents for the purpose of clarification of the RFPrequirements and the RFP evaluation and selection process. Attendance is mandatoryfor those submitting Proposals.Proposal – The documents requested by the City and submitted by each Respondentpursuant to the terms of this RFP.Proposal Expiration Date - The date and time a final Concession Lease is fully executedby all parties or one hundred eighty (180) days after the Deadline for Proposalsubmission, whichever comes first. All Proposals submitted under this RFP shallremain effective and subject to acceptance until the Proposal Expiration Date.Sample DocumentRespondent – The individual or entity submitting a response to this RFP to lease spacein the Airport for the operation of food and beverage service concessions.Salt Lake City Corporation – The Utah municipal corporation that operates andmanages the Salt Lake City International Airport.Salt Lake City International Airport – The large hub, commercial airport located in SaltLake City, Utah.Selected Respondent – An individual or entity selected after the evaluation process thathas provided a Proposal that best meets the evaluation criteria and provides the bestoverall offer for the City.Shell – Concession space that provides minimum conditions for build out by theSelected Respondents.SLCDA – The department of the City that operates and manages the Airport and hasoversight and approval authority over Concession Leases at the Airport.Street Pricing Policy – A pricing policy that specifies that the prices of all food andbeverage service products sold at the Airport may not exceed the prices charged incomparable restaurants within the Greater Salt Lake Metropolitan Area by more than 10percent for like size and quality products.Tenant Design Standards – Design standards as set forth by the City.AIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 6

SECTION 5General Overview1.REQUEST FOR PROPOSAL ("RFP")Salt Lake City Corporation ("City") through its Department of Airports (“SLCDA”) issoliciting competitive proposals from qualified business entities (collectively"Respondents" or individually, a "Respondent") that have demonstrated expertise in thedevelopment and operation of food and beverage service concessions at airports orother transportation centers, shopping centers, malls, or downtown areas, to operateand manage food and beverage concession(s) for use by patrons of the Salt Lake CityInternational Airport (“Airport”). In connection with these food and beverage servicesthe SLCDA has established the following objectives:It is the objective of the SLCDA to make available a variety of quality food and beverageservice concessions to the traveling public and other users of the Airport. Thesuccessful Respondents will be expected to meet or exceed the following goals andobjectives of SLCDA throughout the term of the Concession Leases to be awarded:Sample Document Provide first-class service and quality food and beverage service to Airportconsumers primarily through locally, regionally, or nationally branded concepts Provide innovative food and beverage service concepts offering broad customerappeal Provide prompt, timely service, and product delivery to the traveling public Offer competitive food and beverage service pricing Enhance the friendliness and convenience of services provided at the Airport andadd to the overall image of the Airport and the City Optimize concession revenues to the AirportEach concession employee is an ambassador for the Airport. Employee training isessential and should include knowledge of the terminal areas and other servicesavailable at the Airport.The selected concessionaire will be required to provide all necessary facility build-outs,including materials, supplies and labor, to ensure that the food and beverageconcessions are designed and finished in a manner that complies with applicablebuilding codes and SLCDA standards.2.PRE-PROPOSAL CONFERENCE AND SUBMISSION DATEA pre-proposal conference will be held on September 9, 2010, beginning at 9:00 a.m.local time at the Airport Hilton located in the International Center at 5151 Wiley PostAIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 7

Way. Attendance by at least one Respondent representative is mandatory.Prospective Respondents should return the Pre-Proposal Conference AttendanceForm attached to this RFP as Section 14 by facsimile or mail by September 6, 2010.The purpose of the Conference will be to discuss the requirements and objectives of theRFPs, answer questions, and provide a networking opportunity for prospectiveRespondents and sublessees. Airport management representatives will be available toanswer questions.People with disabilities may make requests for reasonable accommodation no later than48 hours in advance in order to attend this pre-proposal conference. Accommodationsmay include alternate formats, interpreters, and other auxiliary aids. This is anaccessible facility. For questions or additional information, please contact Pam Johnsonat (801) 575-3432; TDD (801) 575-2264.Facility ToursThe City will conduct tours of the existing food and beverage service concessions at theAirport following the Pre-Proposal Conference. Attendance at a facility tour is optional.These will be the only guided tours of the facilities. For security reasons, all participantson the tour must provide their names and date of birth prior to the tour, as requested onthe Pre-Proposal Conference Attendance Form attached as Section 14.Sample Document3.AGREEMENTCity intends to enter into an agreement ("Agreement") with each selected Respondent.The agreement term will begin on or about January 1, 2012, and continuing for a periodof ten (10) years. The standard form of agreement will be made available on the RFPwebsite after the pre-proposal conference. The form agreement will be provided forinformation purposes only. City may modify the terms of the agreement at any timeprior to execution.After completion of the evaluation process, the City will provide a letter of award to theSelected Respondents. Each Selected Respondent shall enter into a ConcessionLease with the City. Each Selected Respondent shall fully execute and deliver to theCity a signed Concession Lease within thirty (30) days after receipt of a letter of awardin the form negotiated by the City and the Selected Respondents, unless this time frameis extended in the sole discretion of the City. Should a Selected Respondent fail toexecute and deliver the Concession Lease within thirty (30) days, the City may cancelthe Lease award and if such failure occurs as a result of Respondent's bad faith or itsfailing to comply with the representations in its Proposal, said Respondent's ProposalGuarantee shall be forfeited as liquidated damages and the Proposal shall be deemedrejected.Following execution of the Agreements by the City, the City shall establish aconstruction and build-out schedule. The schedule shall determine the timing in whichAIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 8

the concession locations shall be made available to the Selected Respondents forconstruction. Prior to build-out, selected Respondents shall obtain City’s writtenapproval of the design and construction drawings.4.PROCUREMENT AND ETHICS REQUIREMENTSRespondents and the selected Respondent must agree to comply with and be governedby City's procurement rules and ethics standards.REPRESENTATION REGARDING ETHICAL STANDARDS FOR CITY OFFICERSAND EMPLOYEES AND FORMER CITY OFFICERS AND EMPLOYEES. TheRespondent represents that it has not: (1) provided an illegal gift or payoff to a cityofficer or employee or former city officer or employee, or his or her relative or businessentity; (2) retained any person to solicit or secure this contract upon an agreement orunderstanding for a commission, percentage, or brokerage or contingent fee, other thanbona fide employees or bona fide commercial selling agencies for the purpose ofsecuring business; (3) knowingly breached any of the ethical standards set forth inCity's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code; or (4) knowinglyinfluenced, and hereby promises that it will not knowingly influence, a city officer oremployee or former city officer or employee to breach any of the ethical standards setforth in City's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code.Sample Document5.EXPLANATION BY ADDENDUM ONLYNo interpretation of the meaning of any provision in this RFP, nor correction of anyapparent ambiguity, inconsistency, error, or any other matter pertaining to this RFP shallbe made to the Respondent orally. Every request for interpretation or additionalinformation regarding this RFP shall be made in writing, via e-mail, to Cole Hobbs,Airport Contracts Manager, at cole.hobbs@slcgov.com. The deadline for questionsshall be 5 p.m. local time on October 15, 2010. City shall not be obligated to respond torequests for such interpretation or correction. By signing and submitting this RFP,Respondent acknowledges that it has registered on the City’s procurement website atwww.slcpurchasing.com and has viewed all materials on the website, including anyaddenda to this RFP.6.RESPONDENT JUDGMENTIt is the responsibility of each Respondent to examine carefully this RFP and to judgefor itself all of the circumstances and conditions which may affect its proposal andsubsequent operation and management of a concession(s) at the Airport pursuant tothe Agreement. Any data furnished by City is for informational purposes only and is notwarranted. Respondent's use of any such information shall be at Respondent's ownrisk. Failure on the part of any Respondent to examine, inspect, and to be completelyknowledgeable of the terms and conditions of the concession requirements, operationalconditions, or any other relevant documents or information shall not relieve the selectedRespondent from complying fully with this RFP or subsequent Agreement.AIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 9

7.PROPOSAL REQUIREMENTSThe submittal requirements are outlined in Section 6 and in Section 10 of this RFP.Proposals must include, at a minimum, responses to each required topic. Respondentsare requested to respond in full, complete, narrative sentences. Respondents may alsoaddress other relevant issues that they consider to be critical to the success of qualityfood and beverage concessions.8.EVALUATION CRITERIAProposal evaluation criteria are outlined in Section 11 to this RFP. The selectioncommittee will consider the submitted proposals and will invite several qualifiedRespondents to be interviewed. A response to the RFP and submission of proposal(s)does not guarantee an interview. Respondents to be interviewed will also be asked tosubmit additional and more detailed information. The committee’s final selections willbe those Respondents which, in the committee’s sole judgment, are deemed to havebeen most responsive to the SLCDA’s goals and objectives of this RFP.9.INSURANCE AND BONDSSample DocumentThe selected Respondents, at their own cost and expense, shall secure and maintainthe following policies of insurance and bonds:A.Commercial General Liability Insurance with City named as an additional insuredin the amount of 2 million* per occurrence limit of liability. The commercialgeneral liability policy or policies shall provide coverage for premises operations,acts of independent contractors and completed operations. The policy mustprovide that coverage will not be canceled or reduced without at least thirty (30)days notice. (*The policy or policies shall have limits of not less than 5 millionper occurrence limit of liability if Concessionaire will be delivering airside [RampAccess].)B.Business Auto Coverage Form. The policy or policies shall provide coverage forowned, hired and non-owned automobiles. The policy or policies shall havelimits of not less than 2 million* per occurrence limit of liability. (*The policy orpolicies shall have limits of not less than 5 million per occurrence limit of liabilityif Concessionaire will be delivering airside [Ramp Access].)C.Evidence of Workers Compensation and Employers' Liability with coverage forstatutory benefits required by the state of Utah.D.A Letter of Credit or Performance Bond in the amount of the Minimum AnnualGuarantee. The collateral must meet the minimum requirements stated in theLetter of Credit Checklist and Performance Bond form attached as Section 18.All policies of insurance and bonds provided shall be issued by insurance companiesqualified to do business in the state of Utah and listed on the United States TreasuryAIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 10

Department's current Department of Treasury Fiscal Services List 570, or shall have arating of not less than "A-" in the most current available A.M. Best Co., Inc.'s BestInsurance Report.10.EMPLOYMENT STATUS VERIFICATION SYSTEM (SB 81)A.Each Respondent and each person signing on behalf of any Respondent certifiesas to its own entity, under penalty of perjury, that the named Respondent hasregistered and is participating in the Status Verification System to verify the workeligibility status of the Respondent’s new employees that are employed in thestate of Utah in accordance with UCA Section 63G-11-103.B.The Respondent shall require that the following provision be placed in eachsubcontract at every tier: “The subcontractor shall certify to the main (prime orgeneral) consultant by affidavit that the subcontractor has verified through theStatus Verification System the employment status of each new employee of therespective subcontractor, all in accordance with Section 63G-11-103 and tocomply with all applicable employee status verification laws. Such affidavit mustbe provided to Consultant prior to the notice to proceed for the subcontractor toperform the work.”Sample DocumentC.The City will not consider a proposal Statement for award, nor will it make anyaward where there has not been compliance with this Section.D.Manually or electronically signing the proposal Statement is deemed theRespondent’s certification of compliance with all provisions of this employmentstatus verification certification required by all applicable status verification laws,including UCA Section 63G-11-103.11.ADDITIONAL INFORMATION AND INQUIRIESCity reserves the right to cancel or modify the terms of this RFP at any time. City willprovide Respondents with written notice of the cancellation or modification. Cityadditionally reserves the right to accept or reject any or all proposals.Communication Prohibition. Respondents or their agents are instructed not to contactselection committee members, City employees, the Mayor’s office, the City Council, ormembers of the Airport Board (as outlined in Salt Lake City Code Title 2 Chapter 2.44,Conflict of Interest), or externally manipulate or influence the procurement process inany way, other than through the instructions contained herein, from the date of releaseof this RFP to the date of execution of the Agreement resulting from this solicitation.City, in its sole discretion, may disqualify Respondents in violation of this paragraph.AIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 11

SECTION 6Submittal and Minimum Qualification Requirements1.SUBMISSION DATERespondents shall submit their proposals no later than 2 p.m. local time onOctober 28, 2010, addressed to:If delivery by U.S. Postal Service mail:Cole HobbsAirport Contracts ManagerSalt Lake City Department of AirportsP.O. Box 145550Salt Lake City, UT 84114-5550If hand delivery or courier delivery:Salt Lake City Department of AirportsAirport Division of Administration and Commercial ServicesTerminal Unit 1776 North Terminal Drive, 2nd Floor MezzanineSalt Lake City, Utah 84122Sample Document2.SUBMITTAL REQUIREMENTSA.One (1) original and nine (9) identical copies of the proposal must be submittedin a sealed package with the Respondent's name, address, submittal date, andthe notation “Food and Beverage Service Concession Proposal, PackageName(s) and/or Number(s)” as appropriate, shall be clearly typed or printed onthe outside of the package in which the Proposal is submitted. Proposals willbecome the property of City and will not be returned to Respondents.B.Proposals for the various concession packages shall be limited to the number ofpages stated in Section 10. The page limits shall be inclusive of all attachmentswith the exception of financial statements. Proposals shall be single sided and intypeface no smaller than 12-point font. Electronic copies of the proposals mustalso be included. The Proposal shall include all required information and meetRFP requirements.C.The Proposal Form, included with this RFP as Section 13, must be completedand returned with the proposals.D.Respondents must complete and submit the Affidavit of Non-collusion that isincluded as Section 15 to this RFP.AIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 12

E.Respondents are instructed not to add, delete, or alter any of the terms andconditions of these RFP documents. If Respondent makes any changes to anyof the documents, City may, in its sole discretion, reject the Proposal.F.Proposal Guarantee. Each proposal shall be accompanied by a bank cashier'scheck, certified check, or proposal bond payable to Salt Lake City Corporation inthe amount(s) stated under Section 7.F. The check or bond shall be given assecurity to guarantee that the successful Respondent will enter into a food andbeverage concession Agreement. The check or bond will be forfeited andsurrendered to City should the selected Respondent fail to enter into Agreement.Checks or bonds will be returned to unsuccessful Respondents within thirty (30)days from the date Agreement is executed.G.ConsiderationIn order to have a Proposal considered by the City, Respondents must provide allof the information required under the terms of this RFP. Respondents shouldreview the following instructions carefully prior to preparing and submitting aProposal.Sample DocumentThe City reserves the right to negotiate with one or more Respondents prior tofinal selection of a Proposal. Notwithstanding City’s election to negotiate withone or more Respondents, all Proposals shall remain in effect and subject toselection or rejection by City.Any Concession Lease arising out of Proposals submitted hereunder (includingany negotiations that follow) shall not be binding on the City, its officers,employees, or agents unless and until it is approved by the City, and then dulyexecuted by the City.The City reserves the right to postpone the Proposal submittal due date or towithdraw this RFP, or portions of this RFP, at any time.H.IrregularitiesA Proposal will be considered irregular and may be rejected if it is improperlyexecuted or fails to satisfy the submittal requirements set forth herein.Notwithstanding the foregoing, the City reserves the right, in its sole discretion, towaive any informalities or irregularities in a Proposal, except that:The City will not waive the requirement that a Proposal, complete in all materialrespects, be received by the City by the time and date specified for receiptthereof; andCity will not consider any Proposal that does not conform in all material respectsto the terms of this RFP.AIRPORT FOOD AND BEVERAGE CONCESSIONS RFPSalt Lake City International AirportPage 13

The City reserves the right to request clarification of information submitted in anyProposal, to require additional information from any Respondent, or to reject anyor all Proposals for any reason and to re-advertise or postpone the RFP processfor the Concession Lease.I.ExecutionProposals shall be executed in the name of the entity actually proposing toperform under the Concession Lease. The Proposal and rent proposal shall bearthe signature of an officer authorized to sign for the entity, and the printed ortypewritten name of the signing officer and office held. Evidence of the authorityof the signer must be attached to the submitted Proposal. In the event of apartnership or a joint venture Proposal, authorized representatives of eachparticipant must sign the Proposal.No Proposal may be withdrawn after it has been submitted to the City unless theRespondent so requests in writing and the request is received by the City beforethe Deadline for receiving Proposals. Submission of a Proposal under this RFPshall constitute an agreement by the Respondent that the Proposal will remain avalid offer subject to acceptance for one hundred and eighty (180) Days after theDeadline for submission of Proposals.Sample DocumentJ.City is subject to the requirements of the Government Records Access andManage

AIRPORT FOOD AND BEVERAGE CONCESSIONS AUGUST 2010 Sample Document. AIRPORT FOOD AND BEVERAGE CONCESSIONS RFP Salt Lake City International Airport Page 2 SECTION 1 . SLCDA - The department of the City that operates and manages the Airport and has oversight and approval authority over Concession Leases at the Airport.

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